Global youth unemployment hits 67 million as weak job creation, AI risks mount: UN

The global youth jobs recovery has gone into reverse, with around 67 million people aged 15 to 24 unemployed in 2025 as weaker economic growth and sluggish hiring pushed up joblessness, the International Labour Organization (ILO) said.

Global youth unemployment rose as slower economic growth, geopolitical tensions and weak job creation made it harder for young people to find work. The United Nations labour agency also warned that the rapid spread of artificial intelligence could add further pressure on new entrants to the labour market.

The youth unemployment rate climbed to 12.4 per cent in 2025 from 12.3 per cent in 2023, leaving about 67 million young people aged 15 to 24 without jobs, according to the ILO’s latest assessment. The increase marks a reversal of the post-COVID-19 recovery trend.

The deterioration is not limited to unemployment alone. The share of young people not in employment, education or training (NEET) rose to 20 per cent, affecting more than 257 million people globally.

The ILO said the worsening trend was widespread, with youth unemployment rising between 2023 and 2025 in eight of the world’s 11 subregions. Rates also increased across high-income, lower-middle-income and low-income economies.

Regional disparities remain significant. The Arab States recorded the highest youth unemployment rate at 26.2 per cent in 2025, followed by Northern Africa at 22.6 per cent, according to the ILO.

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Even advanced economies saw a deterioration. Youth unemployment in North America rose to 9.8 per cent in 2025 from 8.3 per cent in 2023. In Northern, Southern and Western Europe, the rate stood at 15 per cent.

The ILO pointed to a decline in middle-skilled jobs as a key factor making it harder for young people to enter the workforce. Clerical, administrative, sales and manufacturing roles have traditionally served as entry points for school and university leavers.

The shrinking availability of such jobs is contributing to longer job searches and higher unemployment among young people with secondary-level education, the agency said.

This is making the transition from education to employment more difficult at a time when young workers are already facing slower growth and shifting skills demands.

AI adds new uncertainty for young workers

Artificial intelligence is emerging as another source of pressure for young workers. The ILO estimated that 6.1 per cent of jobs currently held by people aged 15 to 29 are in occupations most exposed to AI-related changes.

If just 10 per cent of those jobs were eliminated, around 5.6 million young workers could face unemployment, be forced into career changes or leave the labour force, the agency said.

The impact is expected to be concentrated in high-income economies, where AI adoption is more advanced. However, the ILO stressed that exposure does not automatically mean job losses, as many roles are likely to be transformed rather than fully replaced.

While the long-term impact of AI on employment remains uncertain, the agency said the risks should not be underestimated as companies adopt new technologies and restructure workplaces.

At the same time, demand continues to grow in high-skilled sectors such as science, engineering, healthcare and information technology, creating new opportunities for workers with the required skills.

Informal work remains widespread in developing economies

In developing economies, the challenge is often not just unemployment but the lack of secure, formal jobs. Many young people who cannot afford long periods without income turn to informal work.

Nearly nine in 10 young workers in low- and lower-middle-income countries are in informal employment, according to the ILO. Such jobs typically lack labour protections and social security, leaving workers more vulnerable to economic shocks.

The combination of rising unemployment, shrinking middle-skilled opportunities and widespread informal work is making the transition from education to employment increasingly difficult for millions of young people.

The latest figures also highlight the policy challenge as economies adapt to technological change. The ILO said job creation efforts must be matched with investment in skills development to help young workers compete in evolving labour markets.

For a generation entering the workforce amid weaker growth and rapid technological change, securing a job is only the first step. The greater challenge is finding work that offers stability, protection and long-term opportunity.